General information

Published information

Wholesale Banking

Financial markets

ING Bank is a market leader among its competitor banks on the Slovak market in regards to the total traded volume on foreign exchange and money markets. This enables the bank to provide its clients with favourable conditions for all types of foreign exchange and money market transactions. ING Bank offers the following treasury products.

FX products

Clients have the opportunity to agree by phone on individual exchange rates for amounts above EUR 50,000 or the equivalent in other currencies. During trading hours corporate dealers are able to offer information about exchange rates and expectations and clients have the option to fix the exchange rates. Rates are based on actual market rates. In case of a disadvantageous rate the client can give the dealer, at the given moment, an “order” at what rate he is to buy or sell the mentioned currency (take profit). Meanwhile to protect clients against possible negative trends of exchange rates on foreign exchange markets clients have the opportunity together with the order „take profit“ also to give the order „stop loss”, which protects them against negative market trends.

Spot FX transactions

Spot FX transactions are available for those clients who benefit from approved spot limits. These transactions may be realised for a minimum amount of EUR 50,000 or equivalent. The rates are based on current market rates and agreed with our corporate dealers. If a spot limit is available, cash cover is not necessary on the date of trading.

Forward transactions

Forward transactions are intended for clients who want to fix a favourable current exchange rate for the future. The client can conclude a deal with maturity on an exact day in the future or conclude „forward with floating maturity“ for an agreed time frame within which the client has the opportunity to realise the contract on an optional day. In case that the client wants to fix the exchange rate without delivery of assets (e.g. does not have an opened account), there is the possibility to conclude a „non delivery forward“, which means that on maturity day there is only mutual compensation of the difference between the agreed forward price and the actual price on the market. The client can effectively change the maturity of concluded forward transaction with FX Swaps transaction.

FX Swaps

FX swaps represent a simple type of currency swap, where one currency is exchanged for another for an agreed time period. For this type of swap the real cash flow is at the beginning and at the end of the transactions. This is utilised especially by those clients that have at their disposal financial means in currency „A“ but their cash flow is in currency „B“. The advantage of FX swaps is mainly in the minimising of the costs of foreign conversion while client is protected against exchange rate risk. Another advantage of this product is the possibility to agree the transactions for an optional period and even shorten/prolong the existing swap according to the client‘s requirements.

Currency options

ING Bank offers all types of options and their combinations for the purpose of creating a variety structures respecting the client‘s need. The options, as in case of the other offered products of the foreign exchange market, can be concluded in FCY/FCY or FCY/EUR.

Money Market Products

Term deposits

Term deposits may be denominated in EUR or in foreign currency. Maturities from overnight up to 1 year are available (on a case to case basis longer maturities are considered as well). Term deposit rates are based on current money market rates. The minimum amount per transaction is EUR 100,000. The basis for interest calculation is „actual/360“.

T-Bills and Government Bonds

T-Bills and Government Bonds are the alternatives to term deposit. ING Bank secures for its clients trading on the secondary market of -Bills and Government Bonds. A possibility to participate in primary auctions organised by the National Bank of Slovakia is available for a minimum amount of EUR 1 million.

Corporate Bonds and commercial papers

Corporate bonds and commercial papers are another alternative to term deposits. ING Bank secures for its clients trading on the secondary market.

Forward-Forward represents an agreement on interest rates for setting up a deposit/loan that starts in the future. It enables the client to hedge against a decrease in the interest rate (deposit) or increase of interest rate (loan).

FRA

FRA, unlike Forward-Forward, represents an off - balance instrument where the difference of the agreed rate and actual reference rate is compensated at the beginning of the agreed period. The advantage of FRA is the existence of an interbank (FRA) market and as a result, a higher liquidity of this product.

Interest Swaps

Interest swaps represent the exchange of interest rates, most frequently a fixed interest rate for floating in the same currency, while the principle is not exchanged. The advantage is that it offers a relatively simple and flexible structure.

There are many variations of currency swaps where the principal can be exchanged/or not exchanged at the beginning/at the end of the period, exchange rates can be agreed as fixed towards the fixed rate, floating towards floating, or floating towards fixed rate. Currency swap transactions are concluded for a long-term period and a high volume with ensured high liquidity.

Swaps can be concluded for FCY/FCY as well as FCY/EUR.

Interest Options

ING Bank, as in the case of currency options, offers a complete range of interest options. The basic types are CAP options where the buyer (debtor) of the option hedges against the increase of the interest rate while profiting from the decrease of the interest rate, and FLOOR options where the buyer (creditor) of the option hedges against the decrease of the interest rate while profiting from the increase of the interest rate.